The process of filing for bankruptcy protection can be an important step for regaining control of your life when you have debts that have become unsustainable. While bankruptcy is one of the most important types of legal protection for debtors, it is common for this protection to be underutilized due to individuals being misinformed about this protection or the process of applying for it.
Myth: A Bankruptcy Is Only For Those That Make Poor Financial Choices
An especially common belief about bankruptcy protection is that it is only needed by those that have made poor financial decisions. While these individuals will often need to utilize bankruptcy in order to escape their bad financial decisions, there are many individuals that may find themselves facing financial ruin through no fault of their own. An example of this could be the expenses that a serious injury or illness could create for a person. Additionally, business owners could find themselves experiencing financial hardships due to changing market conditions.
Myth: A Bankruptcy Proceeding Will Mar Your Credit For Life
It should be noted that the effects that a bankruptcy filing will have on your credit can be easy to overestimate. Often, individuals may assume that this filing will mar their credit for the rest of their lives. Yet, a bankruptcy proceeding will be like most other negative marks on your credit in that its effects will fade over time. This is particularly true for those that make a diligent effort to regain control of their finances in the months and years following their bankruptcy filing. Without this protection, these individuals may have continued to struggle, which could have led to further damage occurring to their credit score and history.
Myth: A Bankruptcy Attorney Does Not Provide Many Benefits
The proceedings that are involved with filing for bankruptcy can be extremely complicated. Unfortunately, this can make it almost impossible for a person to be able to effectively navigate this process on their own while still achieving effective results. While money may be tight for those that are filing for bankruptcy, the costs of hiring an attorney that handles this type of case will be negligible. Furthermore, these professionals can often provide convenient payment options to help those with few resources to pay for the representation that they need to handle this process. Just like hiring other professional services, it can be useful to meet with several to learn about the types of fees that you can expect and the results that they will be able to achieve for your particular situation.
If you need a bankruptcy attorney, contact a law firm, such as Havner Law Firm.